Gold is trading in the red after another rejection from a major dynamic resistance. It has opened with a gap up, but the sellers have forced the price to close it. The yellow metal is trading at $1,615 and most likely it will challenge the $1,600 psychological level again before it resumes the upside movement.

Gold maintains a bullish outlook as the COVID-19 epidemic grows and makes new victims, the global economy is under threat, that’s why Gold remains an attractive safe-haven instrument, the price could pass above the $1,703 high soon.

Gold has decreased aggressively after another rejection from the upper median line (UML) of the major orange descending pitchfork. I’ve said on Friday that maintains a bullish bias and it could resume the bullish movement as long as it stays above the $1,600 level and above the median line (ml) of the dark blue ascending pitchfork, a valid breakdown below these levels will validate a potential drop towards the $1,555 level.

I want to remind you that a further increase will be confirmed only after a valid breakout above the upper median line (UML) of the orange descending pitchfork and if the price stays above the $1,600 level and above the median line (ml).

TRADING TIPS

Gold has decreased in the early of the week, but it is still bullish as long as it is traded above the $1,600 and above the median line (ml). A rejection from these levels, false breakdown, followed by a valid breakout above the upper median line (UML) will give us a chance to go long again on Gold, with potential targets at R1 ($1,686) level and at the $1,700 – 1,703 area. A valid breakout above the $1,703 high will validate a further increase on the medium to the long term.

As I’ve said higher, a breakdown and a consolidation below $1,600 could signal a drop on the short term, this scenario will take shape if Gold stays below the UML (orange descending line), the next downside targets are represented by the $1,555 level, S1 ($1,526) and by the lower median line (lml) of the dark blue ascending pitchfork. A potential drop could appear if the USDX starts another leg higher.

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